Success StoryA Success Story

Devender S Narang Jitendra N PatelPooja Mishra Satish J PatelShoibhit Sahai Vikram Chaliyawala

BENIHANA OF TOKYO – An Insight

America’s first Japanese Steakhouse

Introduced Hibachi table cooking Idea

Pioneered by Hiroaki (Rocky) Aoki in 1964

Established chain of 15 restaurants (Gross turn over $12 million / year ).

1964 1966 1967 19721

23

15

BENIHANANA OF TOKYO: Journey

No. Of Restaurants

1964 1967 19720

1.3

12Turn Over(Million $)

BENIHANANA OF TOKYO: Planning

Market Opportunity Three years of extensive market research

American liking for taking food in exotic surroundings

Mistrust of Americans on exotic food Availability of Labour & High Labour cost

Innovations and Creativity

Authentic historical Japanese surroundings Hibachi style of cooking in front of guests

BENIHANANA OF TOKYO: Concept Evolution Operating Strategies

Reduction of overhead expenses Fixed menu to eliminate wastages Reduction in food storage area

Optimal Manpower requirement One chef and one waitress caters to two dining tables Simple organisational structure Employee incentives

Experienced Japanese Chefs were provided with six months training on America’s mannerism

Customer Satisfaction Express service Quality of Food

BENIHANANA OF TOKYO: Concept Evolution

Site Selection and Design Located in high traffic area with easy access to residential and

commercial complexes Floor Plan to maximize dining area

Quick Decision Making

Advertised experience rather than restaurant

Converted cooking business to show business

Introduced communal dining concept

New conceptualization via print media

BENIHANANA OF TOKYO: Advertising Strategies

BENIHANA OF TOKYO: Comparison

Benchmark Benihana

Labour Cost (as % of Operating Expenses)

30-35

Food Cost (as % of COGS) 38-48

Beverage Cost (as % of COGS) 25-30

Rent (as % of Operating Expenses)

05-09

Promotion (as % of Operating Expenses)

0.75-2.0

Construction cost Lower

Benchmark Benihana

Labour Cost (as % of Operating Expenses)

30-35 8-10

Food Cost (as % of COGS) 38-48 30-35

Beverage Cost (as % of COGS) 25-30 20

Rent (as % of Operating Expenses)

05-09 05-07

Promotion (as % of Operating Expenses)

0.75-2.0 08-10

Construction cost Lower Higher

BENIHANA OF TOKYO: Comparison

BENIHANA OF TOKYO: Hiccups

Discontinuation of Franchisee Owners lacking relevant experience Lack of Emotional Bonding Limited control over Franchises

Expansion Constraints Scarcity of skilled Japanese staff High construction cost

Use of Indigenous Construction material

Expansion in Overseas through Joint Ventures

Utilize unexplored potential market area

Target other segments of market

BENIHANA OF TOKYO: Recommendations

Thank You